Consumer Proposal

Important Differences Between a Consumer Proposal and Personal Bankruptcy

Consumer ProposalBankruptcy
CostFixed monthly amount for term of the proposal.Can vary month to month depending on your income (surplus income). The more you earn the more you pay.
LengthUp to 5 years (60 months)9 months: no SI or prior bankruptcy 21 months: SI and no priro bankruptcy 24 months: no SI with a prior bankruptcy 36 months: SI and a prior bankruptcy
Impact on Credit ReportR7.
Indicates a settlement with creditors.
Lesser of: 3 years after final payment or 6 years from filing (Equifax)
The lowest rating possible (indicates the debt is written off). Reported for 6 to 14 years after discharge date.
DutiesMake monthly proposal payments. Attend two credit counselling sessions.Make monthly payments to Trustee. Report monthly budget with proof of income.
Provide tax documents to trustee. Attend two credit counselling sessions.
OtherWill know up front if creditors will accept proposal offer.Creditors could oppose discharge at the end.

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